<Provisional translation>

For Immediate Release

May 12, 2014

REIT Issuer
Hankyu REIT, Inc. (Securities Code: 8977)
19-19 Chaya-machi, Kita-ku, Osaka
Yoshiaki Shiraki, Executive Director
Asset Management Company
Hankyu REIT Asset Management, Inc.
Yoshiaki Shiraki, President & Representative Director
Contact:
Akihisa Nakano
General Manager, Corporate Planning Dept.
Email: hankyureit-ir@hankyu-rt.jp

Notice Concerning Acquisition of Domestic Real Estate Trust Beneficiary Interests

Hankyu REIT, Inc. (hereafter “Hankyu REIT”) hereby notifies that Hankyu REIT Asset Management, Inc., theasset management company that Hankyu REIT has selected to manage its assets, today decided on thefollowing acquisition of assets.

Details

1. Overview of Acquisition(1) DAILY QANAT Izumiya Horikawa Marutamachi Store (site)(i) Asset to be acquired:Real estate trust beneficiary interests(Trustee: Mizuho Trust & Banking Co., Ltd.)(ii) Property name:

DAILY QANAT Izumiya Horikawa Marutamachi Store (site)(iii) Proposed acquisition price:

3,100,000,000 yen(excluding acquisition-related expenses, property tax, city planning tax
and consumption tax, among others)(iv) Appraised value:

3,230,000,000 yen (Date of appraisal: April 1, 2014)(v) Proposed acquisition date:June 4, 2014(vi) Seller:

Hankyu Corporation(vii) Acquisition funds:

Proceeds from the issuance of new investment units indicated in thepress release “Notice Concerning the Issuance of New Investment
Units and Secondary Offering of Investment Units” dated today andcash on hand (planned)

Disclaimer:This document is a press release to make a public announcement of the acquisition of domestic real estate trust beneficiary interest, and has notbeen prepared as a solicitation for investment. Hankyu REIT cautions investors to ensure that they refer to the prospectus for notification of theissuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any,
before undertaking investments and investments be made at their own discretion and responsibility.

1(2) kotocross Hankyu Kawaramachi(i) Asset to be acquired:Real estate trust beneficiary interests(Trustee: Mizuho Trust & Banking Co., Ltd.)(ii) Property name:kotocross Hankyu Kawaramachi(iii) Proposed acquisition price: 2,770,000,000 yen(excluding acquisition-related expenses, property tax, city planning tax
and consumption tax, among others)(iv) Appraised value:2,960,000,000 yen (Date of appraisal：April 1, 2014)(v) Proposed acquisition date:June 4, 2014(vi) Seller:

Hankyu Corporation(vii) Acquisition funds:

Proceeds from the issuance of new investment units indicated in thepress release “Notice Concerning the Issuance of New Investment
Units and Secondary Offering of Investment Units” dated today andcash on hand (planned)(3) LIFE Shimoyamate Store (site)(i) Asset to be acquired:Real estate trust beneficiary interests(Trustee: Mitsubishi UFJ Trust and Banking Corporation)(ii) Property name:

LIFE Shimoyamate Store (site)(iii) Proposed acquisition price:

1,421,000,000 yen(excluding acquisition-related expenses, property tax, city planning tax
and consumption tax, among others)(iv) Appraised value:

1,430,000,000 yen (Date of appraisal：April 1, 2014)(v) Proposed acquisition date:June 4, 2014(vi) Seller:

Hankyu Corporation(vii) Acquisition funds:

Proceeds from the issuance of new investment units indicated in thepress release “Notice Concerning the Issuance of New Investment Unitsand Secondary Offering of Investment Units” dated today and cash on
hand (planned)(4) (tentative name) MANDAI Gojo Nishikoji Store (site)(i) Asset to be acquired:Real estate trust beneficiary interests(Trustee: Mizuho Trust & Banking Co., Ltd.)(ii) Property name:(tentative name) MANDAI Gojo Nishikoji Store (site)(iii) Proposed acquisition price:

4,182,000,000 yen(excluding acquisition-related expenses, property tax, city planning tax
and consumption tax, among others)(iv) Appraised value:

4,220,000,000 yen (Date of appraisal：April 1, 2014)(v) Proposed acquisition date:June 24, 2014(vi) Seller:

Hankyu Corporation

Disclaimer:This document is a press release to make a public announcement of the acquisition of domestic real estate trust beneficiary interest, and has notbeen prepared as a solicitation for investment. Hankyu REIT cautions investors to ensure that they refer to the prospectus for notification of theissuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any,
before undertaking investments and investments be made at their own discretion and responsibility.

2

(vii) Acquisition funds:

Proceeds from the issuance of new investment units indicated in thepress release “Notice Concerning the Issuance of New Investment
Units and Secondary Offering of Investment Units” dated today, newborrowings indicated in the press release “Notice Concerning Debt
Financing” dated today and cash on hand (planned)

2. Reason for Acquisition
Based on the target and policy of asset management stipulated in Hankyu REIT’s Articles of Incorporation,
the assets to be acquired stated above (hereafter, the “4 Properties”) will be acquired in order to attaincontinued growth by incorporating properties owned by the sponsor and provided through warehousing
functions of the sponsor group as well as strengthen the portfolio stability by incorporating urban retailproperties and community-based retail properties in a well-balanced manner.
The 4 Properties feature average NOI yield of 5.4% and average NOI yield after depreciation of 5.0%,
which surpass the 4.8% and the 3.3% for the entire portfolio of Hankyu REIT as of the end of the 17th
fiscal period, respectively. Accordingly, Hankyu REIT believes that they should contribute to enhancementof its profitability as well as expansion of its asset scale.
Upon deciding the acquisition of the 4 Properties, the following points have been recognized.
(1) DAILY QANAT Izumiya Horikawa Marutamachi Store (site)
The property is located in an urbanized area approx. 3km north of Kyoto Station on the JR lines, andsituated at a corner of the crossing of the Horikawa-dori and Marutamachi-dori streets. The Horikawa-doristreet that runs in the eastern side of the property’s site travels down through the city area of Kyoto andfunctions as one of the city’s major roads. As such, the location of the property has high scarcity value,featuring good vehicle access.
According to the National Census in 2010, the population of the trade area by distance is approx. 10,000
within a 0.5km radius, approx. 42,000 within a 1km radius and approx. 167,000 within a 2km radius,
representing a favorably large number of people. A comparison between 2005 and 2010 shows that the
population increased for each distance zone, causing no worry about deterioration of the consumption
ability of the market.
DAILY QANAT Izumiya Horikawa Marutamachi Store that stands on the property was opened on
December 14, 2013, and houses MOS Burger, a dry cleaning agency and an ATM corner as subleasetenants, as well as the portions directly operated by Izumiya. The shop floors has a composition like that ofa small general merchandising store (GMS), as foodstuff is sold on the first floor while clothes, daily
necessities and interior goods are sold on the second floor along with a shop floor for drugs andcosmetics.
Izumiya, the tenant, whose main business format is GMS, operates 93 stores centering on the Kansan
area (as of the end of February 2014), offering abundant lineups of bakery and prepared foods as well as
perishable foods. Izumiya plans to implement management integration with H2O Retailing Corporation on
June 1, 2014, which will realize a corporate group that conducts business in wide areas in the Kansai
district.
(2) kotocross Hankyu Kawaramachi
Opened on October 18, 2007, the property faces the Shijo-Kawaramachi crossing of the Shijo-dori and
Kawaramachi-dori streets where the traffic is largest in the Shijo-Kawaramachi area and the potential ishigh. The building enjoys extremely good visibility and features the characteristics of a landmark.
The Shijo-dori street along which the property is located had a sales volume of around 250 billion yen
annually in 2007 and occupied more than 10% of the sales volume of Kyoto City. As such, the street
constitutes the largest shopping area in Kyoto, with a concentration of street-level shops and large-scaleretail facilities.
The combined number of passengers getting on and off trains at Kawaramachi Station on the Hankyu
Kyoto Line, the nearest station to the property, and at nearby Gion Shijo Station on the Keihan Main Line
Disclaimer:This document is a press release to make a public announcement of the acquisition of domestic real estate trust beneficiary interest, and has notbeen prepared as a solicitation for investment. Hankyu REIT cautions investors to ensure that they refer to the prospectus for notification of theissuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any,
before undertaking investments and investments be made at their own discretion and responsibility.

3

is approx. 112,000 (2011), while the combined number for Karasuma Station on the Hankyu Kyoto Lineand the nearby Shijo Station on the Kyoto City Subway is approx. 172,000. In addition, the location is athrough-point of many bus operation routes centering on Kyoto City Bus, and many people use busses aswell as trains.
(3) LIFE Shimoyamate Store (site)
The property is located in Chuo Ward, the central part of Kobe City, with Hanakuma Station on Hankyu
Kobe Kosoku Line, the nearest station, approx. 0.4km to the south, Motomachi Station on the Hanshin
Main Line and Kobe-Sannomiya Station on the Hankyu Kobe Line approx. 0.8km and approx. 1.7km to theeast, respectively. The property is in an existing urban area where, although there are some detachedhouses, there are many middle- to high-rise condominiums and condominium development projects areunder way even at present.
According to the National Census in 2010, the population of the trade area by distance is approx. 13,000
within a 0.5km radius, approx. 38,000 within a 1km radius and approx. 104,000 within a 2km radius. As
such, the population density of the current trade area is high for an urban district, posing a positive factor
for neighborhood-type business formats like food supermarkets. A comparison between 2005 and 2010shows that the population is on an increasing trend of 1% to 2% per year for each distance zone, and isanticipated to continue the increasing trend over recent years when considering the trend of new
condominium development projects being conducted.
Life Corporation, the tenant, is a supermarket chain centering on foodstuff that operates 240 stores in thetwo major trade areas of the Tokyo metropolitan area (Tokyo, Saitama, Kanagawa and Chiba Prefectures)and the Kinki area (Osaka, Hyogo, Kyoto and Nara Prefectures) as of the end of March 2014. The store on
the property sells foodstuff on the first floor, and liquor, confectionery and daily necessities, etc. on thesecond floor, with almost all shop areas directly operated. As the building is equipped with a parking lot on
the roof, it can expect many customers visiting on foot or by bicycle from the current highly-populatedtrade area.
(4) (tentative name) MANDAI Gojo Nishikoji Store (site)
Approx. 3km to the northwest of Kyoto Station on the JR lines, the property is located at the southern edgeof Ukyo Ward, Kyoto City, and at the periphery of the central urban areas. It is approx. 0.8km to NishiKyogoku Station on the Hankyu Kyoto Line, the nearest station. The property is in an existing urban areawith a mixture of working and residential places, dotted with small factories in a spreading old residential
district.
According to the National Census in 2010, the population of the trade area is approx. 9,000 within a 0.5km
radius, approx. 39,000 within a 1km radius and approx. 146,000 within a 2km radius. As such, the current
trade area constitutes a highly-dense rich market that has a population within a 0.5km radius large enoughto allow a food supermarket to operate.
The building is under construction as of the date of this document, and is scheduled to open in the winterof 2014. MANDAI, the tenant, is a company that operates 149 supermarkets (as of the end of February2013) primarily in the Osaka area, and plans to start operation on the property in the winter of 2014.
Moreover, many of the stores operated by MANDAI have strong promotion ability and pricing appeal of thethree perishable foodstuffs (fish, meat and vegetable), and generate good results with a high efficiency bytsubo. Accordingly, MANDAI stores can be expected to attract strong support from customers.

3. Details of Assets to be Acquired(1) DAILY QANAT Izumiya Horikawa Marutamachi Store (site)
Property name

DAILY QANAT Izumiya Horikawa Marutamachi Store (site)

Specified asset type

Trust beneficiary interests

TrusteeMizuho Trust & Banking Co., Ltd.

Disclaimer:This document is a press release to make a public announcement of the acquisition of domestic real estate trust beneficiary interest, and has notbeen prepared as a solicitation for investment. Hankyu REIT cautions investors to ensure that they refer to the prospectus for notification of theissuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any,
before undertaking investments and investments be made at their own discretion and responsibility.

4

Period of trust
Proposed acquisition
priceAppraised value
Location Address
Land

Building
coverage
Floor area
ratio
Zone use

Lot area
Form ofownership
Property manager

Collateral

Other matters to note

From February 22, 2013 to June 30, 2024 (scheduled)
3,100,000,000 yen
3,230,000,000 yen (Date of appraisal：April 1, 2014)(Appraisal organization: Daiwa Real Estate Appraisal Corporation
146 Horikawamachi, Marutamachi Kudaru, Horikawa-dori, Kamigyo-ku,
Kyoto-shi, and other
80%/60%
Building Month/Year－
built
600%/400%/200%
Structure－/Floors
Commercial
Use
district/Type 1－
residential district
2
3,776.15m
Total floor－
area
Right of ownership
Form of－ownership
HankyuHanshin Building Management Co., Ltd. (planned)
It is planned to establish the right of pledge for the trust beneficiaryinterests and revolving mortgage with a condition precedent for the subject
property, respectively, in order to secure obligations to refund the security
deposits and guarantees to the tenant, etc. (Note).
Secured creditor: Izumiya Co., Ltd. (planned)
Hankyu REIT plans to own the land only.

Note: The amount of the secured claim is not disclosed as no consent to disclose the amount of the security deposits
has been obtained from the tenant.

(2) kotocross Hankyu Kawaramachi
Property namekotocross Hankyu Kawaramachi

Specified asset type

Trust beneficiary interests

TrusteeMizuho Trust & Banking Co., Ltd.

Period of trust
Proposed acquisition
price

From August 23, 2013 to June 30, 2024 (planned)

Appraised value
Location Address
Land

Building
coverage
Floor area
ratio

Zone use
Lot area

Form ofownership

2,770,000,000 yen
2,960,000,000 yen (Date of appraisal：April 1, 2014)(Appraisal organization: Daiwa Real Estate Appraisal Corporation
67-1 shin-cho, Kobashi Nishi-iru, Shijyo-dori, Shimogyo-ku, Kyoto-shi, and
other
80%
Building Month/Year
October 2007
built
700%
Structure /Steel-frame, steelFloors
frame reinforced
concrete structurewith flat roof / 1
underground level, 9floorsCommercial district
Use
Store
2
638.62 m (including
Total floor22
205.08 m of leasedarea
4,400.13 m
land)
Right of ownership
Form ofRight of ownership
Leased-land rightownership

Design company

Asai Ken Architectural Research Inc.

Construction company

Toda Corporation

Disclaimer:This document is a press release to make a public announcement of the acquisition of domestic real estate trust beneficiary interest, and has notbeen prepared as a solicitation for investment. Hankyu REIT cautions investors to ensure that they refer to the prospectus for notification of theissuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any,
before undertaking investments and investments be made at their own discretion and responsibility.

5Building recognition
organization

Kyoto Organization of Confirmation & Inspection

Property manager

HankyuHanshin Building Management Co., Ltd. (planned) (Note)

Earthquake PML(Evaluators)
Collateral

2.6% (Engineering & Risk Services Corporation and OYO RMS
Corporation
None
The land where the subject property is located was designated as the 31m
height district as of September 1, 2007. However, as the building height is40.593m (the largest height of the building indicated in the building
recognition application form), it is currently classified as existing nonconformity land.

Other matters to note

Note: Aside from HankyuHanshin Building Management Co., Ltd. (planned), part of the property management services is
consigned to Hankyu Corporation, which has re-consigned the said services to HankyuHanshin Building
Management Co., Ltd.

(3) LIFE Shimoyamate Store (site)
Property name

LIFE Shimoyamate Store (site)

Specified asset type

Trust beneficiary interests

Trustee

Mitsubishi UFJ Trust and Banking Corporation)

Period of trust
Proposed acquisition
price

From September 12, 2013 to June 30, 2024 (planned)
1,421,000,000 yen

Appraised value

1,430,000,000 yen (Date of appraisal：April 1, 2014)(Evaluator: The Tanizawa Sogo Appraisal Co., Ltd.)

Location Address

7-1-7 Shimoyamatedori, Chuo-ku, Kobe-shi

Land

80%/60%

Building
coverage
Floor area
ratio
Zone use

Lot area
Form ofownership

400%/300%
Commercial district/Type 2 residential
district
2,397.83 m2

Building Month/Year
built
Structure /FloorsUse－－－

Total floor
area
Form ofownership

Right of ownership－－

Property manager

HankyuHanshin Building Management Co., Ltd. (planned)

Collateral

None・Hankyu REIT plans to own the land only.
・Based on the agreement to establish leasehold interest for businesspurposes executed between the Trustee and Life Corporation, it has
been decided that, when the ownership of the subject property istransferred to any third party, prior notice in writing shall be made to Life
Corporation and, if Life Corporation wishes to purchase it, preferential
negotiations shall be made with the company.

Other matters to note(4) (tentative name) MANDAI Gojo Nishikoji Store (site)
Property name(tentative name) MANDAI Gojo Nishikoji Store (site)

Specified asset type

Trust beneficiary interests

Trustee:Mizuho Trust & Banking Co., Ltd.

Period of trust

From September 13, 2013 to June 30, 2024 (planned)

Disclaimer:This document is a press release to make a public announcement of the acquisition of domestic real estate trust beneficiary interest, and has notbeen prepared as a solicitation for investment. Hankyu REIT cautions investors to ensure that they refer to the prospectus for notification of theissuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any,
before undertaking investments and investments be made at their own discretion and responsibility.

6

Proposed acquisition
price4,182,000,000 yen

Appraised value

4,220,000,000 yen (Date of appraisal：April 1, 2014)(Appraisal organization: Daiwa Real Estate Appraisal Corporation

Location Address

33 Saiin rokutandacho, Ukyo-ku, Kyoto-shi, and otherLand

Building
coverage
Floor area
ratio
Zone use

60%

Lot area

9,182.80 m2

Form ofownership

Right of ownership

300%/200%
Industrial district

Building Month/Year
built
Structure /FloorsUse－

Total floor
area
Form ofownership

－

－
－

－

Property manager

HankyuHanshin Building Management Co., Ltd. (planned)

Collateral

None
・The sale agreement regarding the acquisition of the property falls under
the definition of forward commitment, etc. (contracts for forward andfuture transactions, for which settlement and delivery take place one ormore months after their signing, and other contracts of similar nature as
defined in the “Comprehensive Guidelines for Supervision of Financial
Instruments Business Operators, etc.”).The sale agreement regarding
the acquisition of the property stipulates that the obligation to pay thesale price shall arise on the condition that Hankyu REIT has completed
procurement of funds required to pay the sale price. In addition, there is
no provisions concerning cancelation penalty, and there is no deposit ofmoney to be paid in advance.
Therefore, it is unlikely that, even if forward commitment, etc. cannot be
implemented because of failure to complete fund procurement, there
will be a major impact on financial operations, etc. of Hankyu REIT.
・Hankyu REIT plans to own the land only.
・The building is under construction as of today, and the rent through thebuilding completion date (planned for completion in the winter of 2014)
will be 30% of the rent after completion. Furthermore, the entire rent
will be paid on the day following the building completion date andafterward.

Other matters to note

4. Overview of Leasing(1) DAILY QANAT Izumiya Horikawa Marutamachi Store (site)
Total number of tenants
1
Principal tenantIzumiya Co., Ltd.
Rent－(Note 1)
Leasable area
3,776.15 m2 (Note 2)
Leased area
3,776.15 m2 (Note 2)
Occupancy rate
100% (Note 3)
Security deposits－(Note 1)
Note 1: Rent and security deposits are not disclosed as no consent has been obtained from the tenant.
Note 2: The areas stipulated in the lease agreement for the land as of today are indicated.
Note 3: The ratio of leased area to leasable area is indicated.

(2) kotocross Hankyu Kawaramachi
Total number of tenants
1 (Note 1)
Principal tenant
Hankyu Corporation
Annual rent
204 million yen (Note 2)
Disclaimer:This document is a press release to make a public announcement of the acquisition of domestic real estate trust beneficiary interest, and has notbeen prepared as a solicitation for investment. Hankyu REIT cautions investors to ensure that they refer to the prospectus for notification of theissuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any,
before undertaking investments and investments be made at their own discretion and responsibility.

7

Leasable area
Leased area
Occupancy rate
Security deposits

24,400.13 m (Note 3)2
4,400.13 m (Note 3)
100% (Note 4)
102 million yen (Note 2)

Note 1: The total number of tenants is considered as 1 because the property is entirely leased to tenants under the
master lease agreement. Furthermore, it is planned to execute an agreement to amend the master leaseagreement between the Trustee and Hankyu Corporation as of June 4, 2014. Therefore, the number of tenants
is what is indicated in the agreement after the said amendment (hereafter, the “agreement after amendment”).
Moreover, as of the end of February 2014, the number of end tenants stands at 10 and the occupancy rate (totalleased area of end tenants to the leasable area) is 100%.
Note 2: The amount stipulated in the agreement after amendment is indicated.
Note 3: The areas stipulated in the agreement after amendment are indicated.
Note 4: The ratio of the leased area under the agreement after amendment to the leasable area is indicated.

(3) LIFE Shimoyamate Store (site)
Total number of tenants
1
Principal tenant
Life Corporation
Rent－(Note 1)
2
Leasable area
2,397.83 m (Note 2)
Leased area
2,397.83 m2 (Note 2)
Occupancy rate
100% (Note 3)
Security deposits－(Note 1)
Note 1: Rent and security deposits are not disclosed as no consent has been obtained from the tenant.
Note 2: The areas stipulated in the lease agreement for the land as of today are indicated.
Note 3: The ratio of leased area to leasable area is indicated.

(4) (tentative name) MANDAI Gojo Nishikoji Store (site)
Total number of tenants
1
Principal tenant
Mandai Co., Ltd.
Rent－(Note 1)
Leasable area
9,182.80 m2 (Note 2)
Leased area
9,182.80 m2 (Note 2)
Occupancy rate
100% (Note 3)
Security deposits－(Note 1)
Note 1: Rent and security deposits are not disclosed as no consent has been obtained from the tenant.
Note 2: The areas stipulated in the lease agreement for the land as of today are indicated.
Note 3: The ratio of leased area to leasable area is indicated.

5. Overview of Seller
All the 4 properties of DAILY QANAT Izumiya Horikawa Marutamachi Store (site), kotocross Hankyu
Kawaramachi, LIFE Shimoyamate Store (site) and (tentative name) MANDAI Gojo Nishikoji Store (site) will beacquired from Hankyu Corporation.
Name

Hankyu Corporation

Location
Title and name ofrepresentative
Capital1-1, Sakae-machi, Ikeda-shi, Osaka
Yoshihiro Nakagawa, Representative Director
100 million yen (Note)

Main business activities

Urban transportation business, real estate business, entertainment &communications business

Date of establishment
Net assets and total
assets in the immediate
preceding fiscal year

October 19, 1907
Net assets: 154,633 million yen
Total assets : 1,027,340 million yen(as of March 31, 2013)

Disclaimer:This document is a press release to make a public announcement of the acquisition of domestic real estate trust beneficiary interest, and has notbeen prepared as a solicitation for investment. Hankyu REIT cautions investors to ensure that they refer to the prospectus for notification of theissuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any,
before undertaking investments and investments be made at their own discretion and responsibility.

8

Major shareholder andshareholding ratio

Hankyu Hanshin Holdings, Inc. 100%

Relation to Hankyu REIT
or asset managementcompany

Capital relationships:
A unitholder (3.99% unitholding) of Hankyu REIT. A
shareholder (100% shareholding) of the asset managementcompany Hankyu REIT Asset Management, Inc. and thus
falls under the definition of “interested party, etc.” in theInvestment Trusts Act.
Personnel relationships:
14 directors/employees have been seconded to the asset
management company, of which the president &representative director of the asset management company
concurrently holds the position of executive director of Hankyu
REIT. 2 directors/employees concurrently hold a position at
the asset management company. (as of the end of theprevious fiscal period (November 30, 2013))
Business relationships:
Business relationships with Hankyu REIT
Rent paid 1,229 thousand yen(previous period (June 1, 2013 to November 30, 2013))
Business relationships with asset management company
An information sharing-related agreement has been enteredinto with the asset management company.
Applicability as related party:
A shareholder (100% shareholding) of the asset managementcompany Hankyu REIT Asset Management, Inc. and thus falls
under the definition of “related party.”

Note: The capital as of the date of this press release.

6. Status of Property Acquirers, etc.
(1) DAILY QANAT Izumiya Horikawa Marutamachi Store (site)
Previous owner
Company name
Relationship to
special interested
partiesAcquisition
background,reasons, etc.
Acquisition date
Acquisition priceSecond previous owner
Parties other than those withspecial interests

Hankyu Corporation
See “5. Overview of Seller” above－

Wearhousing purpose－

June 21, 2013
3,000 million yen－－(2) kotocross Hankyu Kawaramachi
Previous owner
Company nameHankyu Corporation

Second previous owner
Hankyu Hanshin
Holdings, Inc. (Land)

Third previous owner
Parties other thanthose with special
interests

Disclaimer:This document is a press release to make a public announcement of the acquisition of domestic real estate trust beneficiary interest, and has notbeen prepared as a solicitation for investment. Hankyu REIT cautions investors to ensure that they refer to the prospectus for notification of theissuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any,
before undertaking investments and investments be made at their own discretion and responsibility.

9Relationship to
special interested
partiesAcquisition
background,reasons, etc.
Acquisition date

Acquisition priceSee “5. Overview of
Seller” above

Company split(land), development(building)April 1, 2005 (land)
Completed in
October 10, 2007
(building)
Omitted because
ownership exceeds
one year

The second previous
owner is the parent
company of Hankyu
Corporation, the parent
company of the asset
management company,and falls under thedefinition of interested
party, etc. in theInvestment Trusts Act.
A trademark license
agreement was executed
between the second
previous owner andHankyu REIT and theasset managementcompany as of December
3, 2004. Other than this,
there is no personnel orbusiness relationship.
The second previous
owner is the parent
company of Hankyu
Corporation, the parent
company of the asset
management company,and falls under thedefinition of relatedparties.

－Development purpose－

August 30, 2004 (Land)

－

－

－

(3) LIFE Shimoyamate Store (site)
Previous owner
Company name
Relationship to
special interested
partiesAcquisition
background,reasons, etc.
Acquisition date
Acquisition priceSecond previous owner
Parties other than those withspecial interests

Hankyu Corporation
See “5. Overview of Seller” above－

Wearhousing purpose－

September 12, 2013
1,418 million yen－－

Disclaimer:This document is a press release to make a public announcement of the acquisition of domestic real estate trust beneficiary interest, and has notbeen prepared as a solicitation for investment. Hankyu REIT cautions investors to ensure that they refer to the prospectus for notification of theissuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any,
before undertaking investments and investments be made at their own discretion and responsibility.

10(4) (tentative name) MANDAI Gojo Nishikoji Store (site)
Previous owner

Second previous owner
Parties other than those withspecial interests

Company nameHankyu Corporation

Relationship to
special interested
partiesAcquisition
background,reasons, etc.
Acquisition date
Acquisition priceSee “5. Overview of Sellers”
above 。

－

Wearhousing purpose－

March 24, 2014
4,020 million yen－－

7. Transactions with Interested Parties, etc.
Hankyu Corporation is the seller of DAILY QANAT Izumiya Horikawa Marutamachi Store (site), kotocrossHankyu Kawaramachi, LIFE Shimoyamate Store (site) and (tentative name) MANDAI Gojo Nishikoji Store(site) as well as the master lessee of kotocross Hankyu Kawaramachi (with part of the property
management service for the property planned to be consigned), and falls under the definition of “interested
party, etc.” in the Investment Trusts Act. Accordingly, the agreement to transfer real estate trust beneficiaryinterests and the memorandum of amendments to the fixed-term building lease agreement andmanagement service consignment agreement have been deliberated and approved by the investment
management committee, the compliance committee and the board of directors of the asset managementcompany in accordance with the asset management company’s rules concerning transactions involving
conflicts of interest set forth in the management guidelines, investment management committee
regulations, compliance committee regulations, etc.
Hankyu Hanshin Building Management Co., Ltd., to which the property management operations for the 4
properties are planned to be consigned, falls under the definition of “interested party, etc.” in theInvestment Trusts Act. Accordingly, the property management agreement has been deliberated andapproved by the investment management committee, the compliance committee and the board of directorsof the asset management company in accordance with the asset management company’s rules
concerning transactions involving conflicts of interest set forth in the management guidelines, investment
management committee regulations, compliance committee regulations, etc.
8. Overview of Intermediaries
Not applicable.
9. Settlement Method, etc.
Hankyu REIT plans to pay the sellers the acquisition price in full on the planned acquisition date.
10．Acquisition ScheduleMay 12, 2014

Resolution of acquisition of four properties at the asset management company’s Board of
Directors’ meeting, conclusion of agreement

June 4, 2014

Payment and acquisition of DAILY QANAT Izumiya Horikawa Marutamachi Store (site),kotocross Hankyu Kawaramachi and LIFE Shimoyamate Store (site) (planned)

June 24, 2014 Payment and acquisition of (tentative name) MANDAI Gojo Nishikoji Store (site)(planned)
11．Future Outlook
Please refer to the press release “Notice Concerning Forecasts of Financial Results for the Fiscal
Period Ending November 30, 2014” dated today for the impact on the management of Hankyu REIT’s

Disclaimer:This document is a press release to make a public announcement of the acquisition of domestic real estate trust beneficiary interest, and has notbeen prepared as a solicitation for investment. Hankyu REIT cautions investors to ensure that they refer to the prospectus for notification of theissuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any,
before undertaking investments and investments be made at their own discretion and responsibility.

11

assets for the fiscal period ending May 2014 (18th fiscal period: December 1, 2013 to May 31, 2014)
and the fiscal period ending November 2014 (19th fiscal period: June 1, 2014 to November 30, 2014).

•

The Japanese original document was distributed to press clubs within the Tokyo Stock Exchange (Kabuto Club), Osaka
Securities Exchange, and Ministry of Land, Infrastructure, Transport and Tourism, and to the press club of the construction
trade newspaper of the Ministry of Land, Infrastructure, Transport and Tourism.

•

Hankyu REIT website: http://www.hankyu-reit.jp/eng/<Attached Materials>
・Reference Material 1 Overview of Appraisal Report
・Reference Material 2 Table of Real Estate Portfolio After the Asset Acquisition
・Reference Material 3 Property Photographs, Photograph of External Facade and Map of Location and
Surrounding Area

Disclaimer:This document is a press release to make a public announcement of the acquisition of domestic real estate trust beneficiary interest, and has notbeen prepared as a solicitation for investment. Hankyu REIT cautions investors to ensure that they refer to the prospectus for notification of theissuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any,
before undertaking investments and investments be made at their own discretion and responsibility.

12Reference Material 1<Overview of Appraisal Report>
PROPERTY
NAME

DAILY QANAT Izumiya Horikawa Marutamachi Store (site)

Appraised value
Appraisalorganization
Date of appraisal

3,230,000,000 yen
Daiwa Real Estate Appraisal
Corporation
April 1, 2014

Item
Value indicated by the income approach*
Value using the direct capitalization method(direct capitalization method over a definite term)(1) Net operating income (NOI)(2) Operating profit on deposit andsecurity

Value
3,230,000,000 yen
3,240,000,000 yen(3) Capital expenditures(4) Net cash flow (NCF = (1) + (2) – (3))(5) Discount rate

0 yen
182,259,340 yen
4.9%

177,125,600 yen
5,133,740 yen

Basis for Valuation

Assessment with the investment management yield of
deposit and security estimated to be2.0% based on theinvestment management yield of financial assets, etc.

Assessment by comparing with similar propertytransaction cases, etc. and by adding the property’s
individuality to the yields of financial assets

Value using the discounted cash flow (DCF)
methodDiscount rate (analysis period andrecovery price)

3,220,000,000 yen
4.8%

Assessment based on comparison with the discountrates of similar property transaction cases and theyields of other financial assets, etc.

Discount rate (end of analysis period)

5.0%

Assessment taking into consideration the discountrates of similar property transaction cases, etc.

Special items toconsider at thetime of making
adjustments toprovisional
calculations anddeciding theAppraisal value

The appraisal decision was based on an assessment of the value indicated by the income approach using both thedirect capitalization method and DCF method at 3,230,000,000 yen and the Appraisal value was decided with thevalue.

The Appraisal value of real estate is no more than an indication of the opinion of the value of the appraised real estate at the time of theappraisal conducted by the real estate appraiser in accordance with the Act on Real Estate Appraisal, Real Property Appraisal Standards,
etc. There are cases where another appraisal of the same real estate may result in a different Appraisal value, depending on the realestate appraiser conducting the appraisal and the method or timing of the appraisal. Furthermore, the appraisal of real estate is neither aguarantee nor an obligation, now or into the future, of a sale or purchase at that Appraisal value.

Disclaimer:This document is a press release to make a public announcement of the acquisition of domestic real estate trust beneficiary interest, and has notbeen prepared as a solicitation for investment. Hankyu REIT cautions investors to ensure that they refer to the prospectus for notification of theissuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any,
before undertaking investments and investments be made at their own discretion and responsibility.

13

<Overview of Appraisal Report>
PROPERTY NAME
Appraised value
Appraisalorganization
Date of appraisal

kotocross Hankyu Kawaramachi
2,960,000,000 yen
Daiwa Real Estate Appraisal
Corporation
April 1, 2014

Item
Value indicated by the income approach
Value using the direct capitalization method(1) Total revenues((i)＋(ii)－(iii))(i) Rents and other income from leased
space(ii)Other income(iii) Vacancy loss, etc.

Value
2,960,000,000 yen
2,990,000,000 yen
204,000,000 yen(2) Total expenses (total of (i) through (viii))(i) Maintenance expense, etc.

52,881,860 yen

204,000,000 yen
0 yen
0 yen

0 yen

(ii) Utilities expense(iii) Repair expense(iv) Property management fee(v) Tenant solicitation expense(vi) Tax and public dues

0 yen
1,477,020 yen
3,600,000 yen
0 yen
21,450,400 yen(vii) Nonlife insurance premium
933,640 yen(viii) Other expenses
25,420,800 yen(3) Net operating income (NOI＝(1)－(2))

3,446,380 yen(5) Operating profit on deposit and security

2,040,000 yen

5.0%

Special items toconsider at thetime of making
adjustments toprovisional
calculations
and deciding
the Appraisal
value

Assessment based on the engineering
report and similar cases, etc.
Assessment taking into consideration of
the investment management yield bothfrom the management and procurement
perspectives
Assessment taking into consideration theyields of similar property transactions, etc.

2,950,000,000 yen
4.8%

Terminal capitalization rate

Cost method value
Land ratio
Building ratio

Not recorded as the expense is to beborne by the lessee
Not recorded as the expense is to beborne by the lessee
Assessment based on the engineering
report and similar cases, etc.
Based on the planned contract amountNot recorded as no replacement isassumedAssessment based on the actual amountfor fiscal 2014
Planned amount based on materials
obtained from the asset managementcompany is recorded
Assessment based on the actual amountobtained from the asset managementcompany

149,711,760 yen(7) Capitalization rate
Value using the discounted cash flow (DCF)
methodDiscount rate for periodic income

Not recorded based on the assumption of
long-term occupancy

151,118,140 yen(4) Capital expenditures(6) Net cash flow (NCF＝(3)－(4)＋(5))

Basis for Valuation

5.2%

2,950,000,000 yen
66.8%
33.2%

Assessment taking into consideration of
the property’s risks regarding its local
characteristics and individuality
Assessment by adding uncertainty of
future prediction, etc. to the capitalization
rate
Land leasehold included

The appraisal decision was based on an assessment of the value indicated by the income approach using
both the direct capitalization method and DCF method at 2,960,000,000 yen and the Appraisal value was
decided with the value.

The Appraisal value of real estate is no more than an indication of the opinion of the value of the appraised real estate at thetime of the appraisal conducted by the real estate appraiser in accordance with the Act on Real Estate Appraisal, Real Property
Appraisal Standards, etc. There are cases where another appraisal of the same real estate may result in a different Appraisal
value, depending on the real estate appraiser conducting the appraisal and the method or timing of the appraisal. Furthermore,
the appraisal of real estate is neither a guarantee nor an obligation, now or into the future, of a sale or purchase at that
Appraisal value.

Disclaimer:This document is a press release to make a public announcement of the acquisition of domestic real estate trust beneficiary interest, and has notbeen prepared as a solicitation for investment. Hankyu REIT cautions investors to ensure that they refer to the prospectus for notification of theissuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any,
before undertaking investments and investments be made at their own discretion and responsibility.

14

<Overview of Appraisal Report>
PROPERTY
NAME

LIFE Shimoyamate Store (site)

Appraisedvalue
Appraisalorganization
Date ofappraisal

1,430,000,000 yen
The Tanizawa Sogo Appraisal Co., Ltd.
April 1, 2014

Item
Value indicated by the income approach
Value using the discounted cash flow (DCF) method
Discount rate for periodic income(Year 1 – Year 10.0)
Discount rate for periodic income(Year 11.0 – Year 20.1)
Discount rate for periodic income(Year 21.1 – Year 40.1)
Discount rate for periodic income(upon returning to vacant lot)

Special items toconsider at thetime of making
adjustments toprovisional
calculations
and deciding
the Appraisal
value

Value
1,430,000,000
yen
1,430,000,000
yen
5.0%
5.1%
5.1%
5.2%

Basis for Valuation

Assessment comprehensively taking into
consideration of the content of the current leaseagreement, land rent levels, lease period, businessrisks and other factors, based on the method tocompare with the yields of land transaction cases, etc.
as well as the accumulation method
Assessment based on the discount rate for the current
agreement period and adding the possibility to sell theproperty as vacant land, etc.

The appraisal decision was based on an assessment of the value indicated by the income approach using the DCF
method at 1,430,000,000 yen and the Appraisal value (specified value) of the property was decided with the value, basedon the type of the property as “site (land with leasehold interest for business)” and taking into consideration of the priceformation process that focuses on the profitability for the market participants (consumers) regarding the property and the
purpose of requesting appraisal, among other things.

The Appraisal value of real estate is no more than an indication of the opinion of the value of the appraised real estate at the time of theappraisal conducted by the real estate appraiser in accordance with the Act on Real Estate Appraisal, Real Property Appraisal Standards,
etc. There are cases where another appraisal of the same real estate may result in a different Appraisal value, depending on the real estateappraiser conducting the appraisal and the method or timing of the appraisal. Furthermore, the appraisal of real estate is neither a guarantee
nor an obligation, now or into the future, of a sale or purchase at that Appraisal value.

Disclaimer:This document is a press release to make a public announcement of the acquisition of domestic real estate trust beneficiary interest, and has notbeen prepared as a solicitation for investment. Hankyu REIT cautions investors to ensure that they refer to the prospectus for notification of theissuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any,
before undertaking investments and investments be made at their own discretion and responsibility.

15

<Overview of Appraisal Report>
PROPERTY
NAME(tentative name) MANDAI Gojo Nishikoji Store (site)

Appraised value
Appraisalorganization
Date of appraisal

4,220,000,000 yen
Daiwa Real Estate Appraisal
Corporation
April 1, 2014

Item
Value indicated by the income approach*
Value using the direct capitalization method(direct capitalization method over a definite term)(1) Net operating income (NOI)(2) Operating profit on deposit andsecurity

Value
4,220,000,000 yen
4,320,000,000 yen(3) Capital expenditures(4) Net cash flow (NCF = (1) + (2) – (3))(5) Discount rate

0 yen
223,316,620 yen
5.0%

220,983,100 yen
2,333,520 yen

Basis for Valuation

Assessment with the investment management yield of
deposit and security estimated to be 2.0% based on
the investment management yield of financial assets,
etc.

Assessment using the method to obtain the discountrate by comparing with similar property transaction
cases, etc. and the method to obtain the discount rateby adding the property’s individuality to the yields offinancial assets

Value using the discounted cash flow (DCF)
methodDiscount rate (analysis period andrecovery price)

4,180,000,000 yen
4.9%

Assessment based on comparison with the discountrates of similar property transaction cases and theyields of other financial assets, etc.

Discount rate (end of analysis period)

5.1%

Assessment taking into consideration the discountrates of similar property transaction cases, etc.

Special items toconsider at thetime of making
adjustments toprovisional
calculations anddeciding theAppraisal value

The appraisal decision was based on an assessment of the value indicated by the income approach using both thedirect capitalization method and DCF method at 4,220,000,000 yen and the Appraisal value was decided with thevalue.

The Appraisal value of real estate is no more than an indication of the opinion of the value of the appraised real estate at the time of theappraisal conducted by the real estate appraiser in accordance with the Act on Real Estate Appraisal, Real Property Appraisal Standards,
etc. There are cases where another appraisal of the same real estate may result in a different Appraisal value, depending on the realestate appraiser conducting the appraisal and the method or timing of the appraisal. Furthermore, the appraisal of real estate is neither aguarantee nor an obligation, now or into the future, of a sale or purchase at that Appraisal value.

Disclaimer:This document is a press release to make a public announcement of the acquisition of domestic real estate trust beneficiary interest, and has notbeen prepared as a solicitation for investment. Hankyu REIT cautions investors to ensure that they refer to the prospectus for notification of theissuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any,
before undertaking investments and investments be made at their own discretion and responsibility.

16

Reference Material 2<Table of Real Estate Portfolio After the Asset Acquisition >Property
Code(Note)

Property Name

Facility(Type of
Use)

RegionAcquisition Date
(Actual/Proposed)

Acquisition
Price(Actual/Investment
Proposed)Ratio(millionyen)

R1 (K)HEP Five

RetailKansaiFebruary 1, 2005

6,468

4.6%

R2 (K)

Kitano Hankyu Building

RetailKansaiFebruary 1, 2005

7,740

5.6%

R3 (K)Dew Hankyu Yamada

RetailKansaiFebruary 1, 2005

6,930

5.0%

RetailKansaiNovember 15, 2005

8,600

6.2%

RetailKansaiMarch 29, 2006

1,318

0.9%

RetailOther

October 2, 2006

2,170

April 9, 2007

5

R4 (K)
R5 (K)
R6

Takatsuki-Josai Shopping
CenterNitori Ibaraki-Kita Store (site)
Kohnan Hiroshima NakanoHigashi Store (site)

1.6%

R8

Hotel Gracery Tamachi

RetailOther

December 25, 2008

4,160

3.0%

R9 (K)

LaLaport KOSHIEN (site)

RetailKansaiJanuary 22, 2009

7,350

5.3%

R10

Richmond Hotel Hamamatsu

RetailOther

January 22, 2009

2,100

1.5%

RetailKansai

April 16, 2013

18,300

13.1%

RetailKansaiJune 27, 2013

8,100

5.8%

RetailKansaiJune 27, 2013

1,870

1.3%

RetailKansaiJune 4, 2014

R11 (K)
R12(K)
R13(K)
R14(K)

HANKYU NISHINOMIYAGARDENSAEON MALL
SAKAIKITAHANADA (site)
MANDAI Toyonaka Honan
Store (site)
DAILY QANAT Izumiya Horikawa
Marutamachi (site)

3,100

2.2%

R15(K)

Kotocross Hankyu Kawaramachi

RetailKansaiJune 4, 2014

2,770

2.0%

R16(K)

LIFE Shimoyamate Store (site)

RetailKansaiJune 4, 2014

1,421

1.0%

RetailKansaiJune 24, 2014

4,182

3.0%

86,58462.2%

R17(K)(tentative name) MANDAI Gojo
Nishikoji Store (site)
Subtotal

O1
O2 (K)

Shiodome East Side Building
Hankyu Corporation
Head Office Building

OfficeOther

February 29, 2008

19,025

13.7%

OfficeKansai

April 10, 2013

10,2007.3%

29,22521.0%

Subtotal
M1 (K)

Ueroku F Building

ComplexKansaiNovember 1, 2005

2,980

2.1%

Sphere Tower Tennoz

Complex

Other

October 2, 2007

9,405

6.8%

M3 (K)LAXA Osaka

ComplexKansaiJanuary 22, 2009

5,122

3.7%

M4 (K)

Namba-Hanshin Building

ComplexKansaiJanuary 22, 2009

4,310

3.1%

Kita-Aoyama 3 cho-me Building

Complex

Other

November 12, 2013

1,680

1.2%

Subtotal

23,497

16.9%

Total

139,307100.0%

M2

M5

Note: The properties owned by Hankyu REIT are assigned codes classified by facility (type of use) and region. The
letters on the left represent the facility (type of use): “R” is for retail-use facility, “O” is for office-use facility and “M”
is for mixed-use (complex) facility. The numerals are the numbers assigned to each facility in the chronological
Disclaimer:This document is a press release to make a public announcement of the acquisition of domestic real estate trust beneficiary interest, and has notbeen prepared as a solicitation for investment. Hankyu REIT cautions investors to ensure that they refer to the prospectus for notification of theissuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any,
before undertaking investments and investments be made at their own discretion and responsibility.

17

order of the acquisition. Also, the letter “K” in parentheses to the right of the numerals indicates that the property is
located in the Kansai region.

Disclaimer:This document is a press release to make a public announcement of the acquisition of domestic real estate trust beneficiary interest, and has notbeen prepared as a solicitation for investment. Hankyu REIT cautions investors to ensure that they refer to the prospectus for notification of theissuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any,
before undertaking investments and investments be made at their own discretion and responsibility.

18

Reference Material 3<DAILY QANAT Izumiya Horikawa Marutamachi Store (site): Property Photograph>

Note: Hankyu REIT plans to acquire only the land.

<DAILY QANAT Izumiya Horikawa Marutamachi Store (site): Map of Location and Surrounding Area>

Disclaimer:This document is a press release to make a public announcement of the acquisition of domestic real estate trust beneficiary interest, and has notbeen prepared as a solicitation for investment. Hankyu REIT cautions investors to ensure that they refer to the prospectus for notification of theissuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any,
before undertaking investments and investments be made at their own discretion and responsibility.

19

<kotocross Hankyu Kawaramachi: Property Photograph><kotocross Hankyu Kawaramachi: Map of Location and Surrounding Area>

Disclaimer:This document is a press release to make a public announcement of the acquisition of domestic real estate trust beneficiary interest, and has notbeen prepared as a solicitation for investment. Hankyu REIT cautions investors to ensure that they refer to the prospectus for notification of theissuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any,
before undertaking investments and investments be made at their own discretion and responsibility.

20

<LIFE Shimoyamate Store (site): Property Photograph>

Note: Hankyu REIT plans to acquire only the land.

<LIFE Shimoyamate Store (site): Map of Location and Surrounding Area>

Disclaimer:This document is a press release to make a public announcement of the acquisition of domestic real estate trust beneficiary interest, and has notbeen prepared as a solicitation for investment. Hankyu REIT cautions investors to ensure that they refer to the prospectus for notification of theissuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any,
before undertaking investments and investments be made at their own discretion and responsibility.

21

<(tentative name) MANDAI Gojo Nishikoji Store (site): Image of Exterior>

Note: Hankyu REIT plans to acquire only the land. In addition, the building is currently under construction, so that theimage above may be different from the actual conditions after completion.

<(tentative name) MANDAI Gojo Nishikoji Store (site): Map of Location and Surrounding Area>

Disclaimer:This document is a press release to make a public announcement of the acquisition of domestic real estate trust beneficiary interest, and has notbeen prepared as a solicitation for investment. Hankyu REIT cautions investors to ensure that they refer to the prospectus for notification of theissuance of new investment units and secondary offering of investment units as well as amendments thereto prepared by Hankyu REIT, if any,
before undertaking investments and investments be made at their own discretion and responsibility.

22